Verizon is the lead bidder to buy Yahoo, and a sale could be announced as soon as early next week, sources told CNBC on Friday.

Verizon's bid to buy Yahoo's core business includes real estate, not the intellectual property portfolio, people familiar with the situation said.

Verizon, which acquired AOL last year, had widely been considered to be the front-runner to buy Yahoo's core internet business, although there are likely about five bidders. Still, sources told CNBC that the advisors overseeing the Yahoo sale are now dealing solely with Verizon, and are close to a potential deal in the negotiations.